Shore Capital acts as Financial and Rule 3 Adviser to Styles & Wood in £42.5 million takeover

 

Shore Capital is acting as Financial and Rule 3 Adviser to Styles & Wood Group PLC, an integrated property services and project delivery specialist a UK manufacturer of cleaning and hygiene chemicals and related products, on its proposed £42.5m acquisition by Central Square Holdings Limited.

Under the terms of the Offer, each Styles & Wood Shareholder will be entitled to receive for each Ordinary Share 465 pence in cash.

 

The Offer Price represents a premium of approximately:

·       24.0 per cent. to the Closing Price of 375.0 pence per Styles & Wood Ordinary Share on 20 December 2017 (being the last Business Day before the date of this Announcement);

·       34.4 per cent. to the Volume-Weighted Average Price of 345.9 pence per Styles & Wood Ordinary Share for the three-month period ended 20 December 2017 (being the last Business Day before the date of this Announcement); and

·      26.3 per cent. to the Volume-Weighted Average Price of 368.3 pence per Styles & Wood Ordinary Share for the 12 month period ended 20 December 2017 (being the last Business Day before the date of this Announcement).

 

Commenting on the Acquisition, Paul Mitchell, Chairman of Styles & Wood, said:

“In recent years, Styles & Wood has made significant progress with its diversification strategy, driving strong organic growth supplemented by value accretive acquisitions that have broadened the Group’s service line capabilities. We are confident that Central Square, with its commitment to the creation of a best in class offer within the property services market, is the right partner to take Styles & Wood to the next chapter of its growth story.”

 

 Robert Hough, on behalf of the Independent Directors, added:

“Having considered in detail the best interests of all shareholders and the Company as a whole, the Independent Directors believe that Central Square’s all-cash offer provides an attractive opportunity for Styles & Wood’s shareholders to recognise immediate value for their shares, at a 24% premium to the current share price, against a more challenging macro-economic environment and the backdrop of a highly competitive market. That is why the Independent Directors believe that the terms of the Offer are fair and reasonable and are recommending that shareholders accept the Offer.”